Take home differences PAYE+ National insurance

[ds04225287]

Right, so i'm new to contracting and have decided to take the umbrella route as i'm not sure if this is long term.

Anyway, I have been quoted..

Giant:

Employers NI:£2844
PAYE tax: £3624
Employees NI: £2479

Paysteam:
Employers NI: £3078
PAYE TAX: £3962
Employees NI: £2683

I was under the impression that the only difference should be the difference in company margin. This is nearly £800 in differences per year!!!

Am I being robbed? I thought Paystream was reputable as it has won the ContractorUK reader awards.

I would appreciate it if someone could explain. Thanks


Paystream assumptions:

* On PAYE your agency should accrue holiday pay for you at 14.54% of your gross pay.


* We have not included earnings from any other sources this tax year.

* Our monthly margin has been deducted before any payments are made to you. The net cost to you could be as little as £45.87
* Calculations are based on working 12 months in a year and we have applied monthly tax allowances.
This a difference in nearly £800 per year


Giant assumptions:

1) Tax year 2015/2016
2) Standard single person allowance of 1060L
3) 52 weeks per tax year
4) Business mileage calcuated at 45p per mile for first 10,000 miles annum then 25p thereafter
5) You have no earnings from other tax sources
6) You can claim your expenses on a weekly basis in accordance with giant's expenses policy
7)Net estimated income based on telephone conversation

[PurpleGorilla]

How much is your take home?

[LisaContractorUmbrella]

Ask both providers whether or not they have assumed any expenses in these calculations - if they have that will make a difference to your net pay. If you ask them to re-run their calculations with zero expenses then the figures should be the same other than any differences in the margin charged.

[ASB]

Ask both providers whether or not they have assumed any expenses in these calculations - if they have that will make a difference to your net pay. If you ask them to re-run their calculations with zero expenses then the figures should be the same other than any differences in the margin charged.

It's not rocket surgery really is it ;-)

Given the op hasn't posted any details of the gross pay, the periods it is over etc it makes it somewhat tricky to ascertain where any of the differences may be coming from. Personally the only one I've found presenting reasonably clear figures is this one ;-)

Umbrella Company PAYE Calculator | Contractor Umbrella (though some words about holiday pay deductions and rolling forward and when/how it is paid may perhaps be helpful)

On a guestimate from the figures and assuming both their charges are broadly the same then 800 quid a year difference would imply £4k per year of expenses being assumed in the giant calculation and zero in the paystream one (which does actuallu let you put in an expenses level).

The giant one does not want to give me an example without emailing me and also uses the magic words

"* based on average weekly expenses"

I'm thinking there is a strong chance this number is somewhere around 80 quid a week.